Back to top

Image: Bigstock

Earnings Estimates Moving Higher for Artisan Partners (APAM): Time to Buy?

Read MoreHide Full Article

Artisan Partners Asset Management (APAM - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this investment management firm is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Artisan Partners, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $0.87 per share, which is a change of +24.29% from the year-ago reported number.

Over the last 30 days, the Zacks Consensus Estimate for Artisan Partners has increased 12.65% because three estimates have moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $3.16 per share, representing a year-over-year change of +18.35%.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for Artisan Partners versus no negative revisions. This has pushed the consensus estimate 5.8% higher.

Favorable Zacks Rank

The promising estimate revisions have helped Artisan Partners earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Artisan Partners have attracted decent investments and pushed the stock 17.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Artisan Partners Asset Management Inc. (APAM) - free report >>

Published in